$9.7b Port of Melbourne windfall funnelled to level crossings

TAXPAYERS could fork out an extra $1 billion for add-ons to the Andrews Government’s signature level crossing removal program.

Acting Premier James Merlino has announced more level crossings will be removed. Picture: Sarah Matray

TAXPAYERS could fork out an extra $1 billion for add-ons to the Andrews Government’s signature level crossing removal program.

Public Transport Minister Jacinta Allan has raised questions over the cost of the project this morning after the saying the removal of 50 level crossings over eight years would cost $6-$7 billion.

She later clarified the project was $5-6 billion but improvements including new stations, better signalling and longer platforms would cost extra.

The government had said the program was only expected to cost $5-6 billion when it was announced in 2014.

“We are getting a lot more bang for our buck,” Ms Allan said.

MORE: PORT OF MELBOURNE LEASED FOR MASSIVE $9.7 BILLION

The new funding arrangement was revealed when the government announced level crossing removals are being fast-tracked following the $9.7 billion lease of the Port of Melbourne yesterday.

Ms Allan said 11 extra level crossings on Labor’s list would be put to the market for removal, meaning 37 projects would be underway or completed by the next election in 2018.

The Labor Government had campaigned on 50 level crossing removals by 2022 with 20 underway by 2018.

Ms Allan said the government was “grabbing further” opportunities, especially on the Cranbourne Pakenham Line which added to the boost in costs.

An unexpected windfall from the Port of Melbourne sale will be funnelled towards level crossing removals.

It is understood the works will be carried out by the Level Crossing Removal Authority.

The government appeared confused over the project’s figures with Acting Premier James Merlino committing to a $6 billion budget before Ms Allan’s increased forecast.

“We made promises and we are delivering on those promises,” said Mr Merlino said.

Ms Allan said today’s announcement would make Victorians safer, faster.

“The overall benefit is we get these level crossing removed quicker,” she said.

Crossings to be fast-tracked include Glenroy Rd, Bell St in Coburg and Moreland Rd in Brunswick, along with Camp Rd in Campbellfield and Buckley St in Essendon, and the partial duplication of the Altona Loop and the Kororoit Creek Rd level crossing in Williamstown.

The government would not rule out elevated structures saying the design process was ongoing.

Opposition Leader Matthew Guy said the added funds were a blowout and called for better transparency on the project.

“Jacinta Allan doesn’t know the details of their own level crossing program yet they have put a cost on it,’’ he said.